Rental Property Investor · Murfreesboro, TN · Member since 2018 · 85 posts · 45 votes
I am getting ready to buy a SFR that will likely need at least 40-50k in rehab costs. The sales price will be around 125k. The house was originally built back around 1920.
This house is now in a commercial zone, therefore I can only legally put in (a max of) 45k in repairs if I was to keep it as a SFR. Also, I cannot convert it to any multifamily. I have only done SFR rehabs before, I am not particularly worried about the downside and am okay with a challenge if it is the right thing to do. I am not sure if I should:
1. Just knock the house down and rebuild some sort of commercial building
2. Rehab the house into some sort of small commercial office (lawyer office, small business, etc)